New homes will be built on flood plains

Ministers unveiled plans to build three million new homes by 2020 yesterday and defied widespread warnings by insisting that some will have to be built on flood plains.

Yvette Cooper, the Housing Minister, told the Commons there would have to be a significant increase in housebuilding over the next decade to keep up with demand.

Unveiling the Government's new housing green paper, she stressed that the number of households is projected to grow by around 223,000 a year. However, the number of new homes being built for them to live in is currently only rising by 185,000 each year.

Miss Cooper said that by 2016, ministers wanted to see 240,000 homes being built each year. A total of £8 billion will be spent to build 70,000 affordable homes in each of the next three years, including 45,000 new council houses annually.

She insisted that it was inevitable that some of these new homes would be built on flood plains and warned critics not to "play politics" with the issue.

"What we are not saying is that there should be no housebuilding anywhere in the city of York, which is on a flood plain - the Romans built it on a flood plain - or around 10 Downing Street. That's also on a flood plain," she told BBC Radio 4's Today programme.

"The thing about 10 Downing Street is that it's protected by the Thames barrier. There are very good flood defences in place. That's what you've got to take account of.

"I really hope that people will not play politics with the dreadful flooding and the misery that we have seen in order to whip up hostility to new housing.

"We have got to both provide people with proper protection and make sure new homes are built in safe areas and are properly protected.

"But I don't think that misinformation being used just to whip up hostility against housing is fair on those people who desperately need affordable housing now."

However, her stance was challenged by opposition politicians and the insurance industry, who warned that it would be foolhardy to allow more building in areas at risk of flooding.

Nick Starling, the director of general insurance and health at the Association of British Insurers, argued that ministers should ban any new homes being built in areas at high risk of flooding.

"The devastation caused by the recent floods shows the importance of planning for the future. We need a fresh approach to house building to take account of the increasing risk of flooding and to ensure sustainable communities," he said.

"New homes should not be built in high-risk areas of the floodplain. They must be planned and designed with flooding in mind, with greater use of flood-resilient building materials."

Jill Craig, of the Royal Institute of Chartered Surveyors, stressed that recent events had shown the Government's decision to cut spending on flood defences last years was "incredibly short-sighted."

She added: "Any decision to base many new homes on flood plains will necessitate large spending on flood defences."

The Conservatives voiced concern that the Government's proposals would lead to further flooding and misery in the years to come.

Grant Shapps, the Shadow housing minister, told MPs: "We can expect more flash floods of the type we have experienced in recent days and weeks. Labour aren't planning the eco-towns of the 21st century, they are planning the sink estates of tomorrow."

Sir Menzies Campbell, the Liberal Democrat leader, voiced unease about the Government's blueprint during a visit to areas hit by floods in Hull.

"I think it's extraordinary for the Government to announce that it intends to proceed with building of houses on flood plains," he said.

The Green Paper also spelt out plans for new schemes to help first-time buyers and key-workers - including nurses and teachers - to get a foot on the housing ladder.

One new scheme will see first-time buyers being able to apply for an equity loan from the Government which will cover 17.5 per cent of the value of the their new house. When the owner sells the house, they will repay 17.5 per cent of its resale price to the Government.

Miss Cooper also reiterated Labour's pledge to ensure that all new homes are zero-carbon by 2016, with a host of green features to cut their carbon dioxide emissions.

Green targets

• All new homes must be "zero carbon" by 2016 using features such as improved insulation, smart electricity meters and solar panels.

• Plans to cut the water used in new homes by a fifth.

• Scheme to create five "eco-towns" of between 5,000 and 20,000 homes designed to reach "zero carbon standards".

• Mandatory rating of how houses compare against the official Code for Sustainable Housing - one star awarded to the worst performers and six to the best.

• Councils should use the "latest climate change predictions" when deciding whether to allow building on flood plains. Homes should be allowed if "suitable protection" is in place.

Affordable housing

• The new homes will include 1.6 million homes already included in regional planning strategies, as well as 100,000 planned by the creation of five new "eco-towns."

• A significant proportion of these new homes will be low cost. By 2010, the Government wants at least 70,000 affordable homes being built a year.

• At least 45,000 will be social homes -the new phrase for council houses - a 50 per cent increase in three years.

• There will also be 25,000 shared ownership and shared equity homes, mainly targeted at key workers.

• First-time buyers can apply for an equity loan from the Government to cover 17.5 per cent of the value of new house.